Management accounting

l
Part A The nature, source and purpose of management information

CHAPTER 3
PRESENTING INFORMATION
Framework

1. Written reports

2. Presenting and interpreting

Presenting information information in tables

3. Presenting and interpreting

information in charts
 1. Written reports
1.1 What is a report?
Management Decision making
Information
Communication to users
Report

The purpose of a report must be clear, and certain general principles

should be followed in planning and giving structure to a report.

Stylistic qualities of reports include objectivity and balance and ease of

understanding.
 1. Written reports
1.2 Reports and purpose
Reports are usually intended to initiate a decision or action.
• Control action

• Planning decisions
 1. Written reports
1.3 The types of reports

Types Explanation

a manager will be commissioned, who will then

A special ‘one-off’
be expected to make a decision on the basis of
report
what the report tells.

such as performance reports, might be

Routine reports required because they are part of established
procedures.
如例会报告
 1. Written reports
1.4 Planning a report
Question:
Which of the following questions should you ask yourself before
writing a report?
a) who is the user?
b) what type of report will be most useful to him/her?
c) what exactly does he/she need to know, and for what purpose?
d) how much information is required, how quickly and at what cost?
e) do you need to give judgements, recommendations etc. (or just
information)?
A. a,b,c
B. b,e
C. c,d,e,
D. a,b,c,d,e

Answer: D
 1. Written reports
1.5 The format of reports

The main types of report:

• The short formal report
市 • The short informal report
• The memorandum report
备忘录
 Illustration 1: Short formal report写论 时较常同
Short formal report
The title of the report (its subject) and, as appropriate, who has prepared it, for whom it is
intended, the date of completion, and the status of the report(Confidential or Urgent)
TERMS OF REFERENCE or INTRODUCTION
Here is laid out the scope and purpose of the report: what is to be investigated, what kind of
information is required, whether recommendations are to be made etc.
PROCEDURE or METHOD
This outlines the steps taken to make an investigation, collect data etc. Telephone calls or visits
made, documents consulted, computations made etc should be briefly described, with the names
of other people involved.
FINDINGS
The content should be clearly structured in chronological order, order of importance, or any other
logical relationship.
CONCLUSIONS (a summary of main findings)
RECOMMENDATIONS
Illustration 2: Short informal report
Short informal report
To: the name and the title of the person to whom the report is addressed
From: the name and title of the report writer
题
管
Date:
Reference: (if necessary)
Subject: brief description of the content of the report
不要
之的 字 可使 标题
Background or situation of introduction 段 考官的问题
Findings or analysis of the situation

Action or solution of conclusion

 2. Presenting and interpreting information in tables
Since a table is two-dimensional, it can only show two variables.
Guidelines for tabulation:
表格
• Clear title
• Label all columns/rows
• Subtotals where appropriate Spreadsheets
• Total column at right/bottom
Resources of for production
Resources A B C
$ $ $
Direct material X X X
Direct labour X X X
Overheads X X X
Total X X X
3. Presenting and interpreting information in charts
图表
Simple bar charts

Component bar chart

Bar charts
柱状图 Percentage component bar
charts
Pie charts
Charts 饼图 Multiple bar chart
Scatter diagrams
散点图
Line graphs
线形图
 3. Presenting and interpreting information in charts

3.1 Bar chart

A bar chart is a method of presenting information in which quantities

are shown in the form of bars on a chart, the length of the bars being
proportional to the quantities.
 3. Presenting and interpreting information in charts
3.1 Bar chart
3.1.1 Simple bar charts
A simple bar chart is a chart consisting of one or more bars, in which the length of each
bar indicates the magnitude of the corresponding information.

Barker Ltd’s total sales for the years from year 1 to year 6 are as follows.
Year Sales 18,000
16000
17000

16,000
(Units) 14,000
14,000
12000
1 8,000 12,000 11000

2 12,000 10,000
8,000
8,000
3 11,000
6,000
4 14,000 4,000
5 16,000 2,000
0
6 17,000 Year 1 2 3 4 5 6

仅有 个要素
 3. Presenting and interpreting information in charts
3.1 Bar chart
3.1.2 Component bar chart
A component bar chart is a bar chart that gives a breakdown of each
total into its components.

Barker Ltd’s sales by region year 7 to 9

40,000
Year 7 Year 8 Year 9 35,000
30,000
Region 1 10,000 12,000 17,000 25,000
Region 3
Region 2 9000 10000 10000 20,000
Region 2
Region 3 5000 6000 7000 15,000
Region 1
10,000
Totel 24,000 28,000 34,000 5,000
0
Year 7 8 9
 3. Presenting and interpreting information in charts
3.1 Bar chart
3.1.3 Percentage component bar charts
Percentage component bar charts have each bar representing a class
but all drawn to same height representing 100% of the total.

Barker Sales analysis by region year 7 to year 9

100%
21 21 21
Year 7 Year 8 Year 9 80%
Unit % Unit % Unit % % 29
60% 37 36
Region 1 10,000 42 12,000 43 17,000 50
40%
Region 2 9000 37 10000 36 10000 29 50
20% 42 43
Region 3 5000 21 6000 21 7000 21
0%
Totel 24,000 100 28,000 100 34,000 100 Year 7 8 9
Region 1 Region 2 Region 3
 3. Presenting and interpreting information in charts
3.1 Bar chart
3.1.4 Multiple bar chart
A multiple bar chart (or compound bar chart) is a bar chart in which two
or more separate bars are used to present sub-divisions of information.
Barker Sales analysis by region year 7 to year 9
18,000
16,000
14,000
12,000
10,000 Region 1
8,000 Region 2
6,000 Region 3
4,000
2,000
0
Year 7 8 9
 3. Presenting and interpreting information in charts

3.2 Pie chart

A pie chart is a chart which is used to show pictorially the relative size of
component elements of a total.

Breakdown of air pollution complaints

Industry
29%
Miscellaneous
42%
Govt incinerator
and utility
1% Vehicle emission
15%
 3. Presenting and interpreting information in charts

3.2 Pie chart——Example

Using the percentage figures

Cardiff factory Swansea factory

10%
15% 20%

Material W
35% 20%
Material A
15% Material L
Material E

15% 50%
 3. Presenting and interpreting information in charts

3.2 Pie chart——Example

Using the percentage figures
• The total percentage: 100%
• The total number of degrees: 360
• Each percentage value by 360/100%=3.6

Cardiff factory Swansea factory

% Degrees % Degrees
Material W 35 126 20 72
Material A 15 54 50 180
Material L 45 162 20 72
Material E 5 18 10 36
100 360 100 360
Exam focus point

Pie chart
A computer-based exam cannot require you to draw charts so
questions will focus on:
• Labeling,
标注
• calculating values,
计算
• choosing an appropriate chart and
选择合适的表
• coming to conclusions using charts
图表 结论
 Practice 3.1
The cost of materials for product A are as follows:
Material W: $2,250
之144
ǎi
Material X $3,000

鼉
Material Y: $ 3,600
Material Z: $150

If the material proportions were displayed on a pie chart, how many

0
degrees would material Y represent?

144 degrees

Answer:
The correct answer is: 144 degrees
3600/(2250+3000+3600+150)x360=144
 3. Presenting and interpreting information in charts

3.3 Scatter diagrams

研究两个变量之间的关系
Scatter diagrams are graphs which are used to exhibit data, (rather than
equations) in order to compare the way in which two variables vary with
each other.

X axis: independent variable

Y axis: dependent variable
Trend line: y=a+bx
䲜
Y=20+0.9x
 3. Presenting and interpreting information in charts

3.4 Line graphs

A line graph is a type of chart used to visualise relationships between

variables.

Example:
A company manufactures a product. The total fixed costs are $75 and
the variable cost per unit is $5.
(a) Find an expression for total costs (c) in term of q, the quantity
produced.
(b) Use your answer to (a) to determine the total costs it 100 units are
produced
(c) Use the graph to determine the total cost if 75 unit are produced.
 3. Presenting and interpreting information in charts
3.4 Line graphs
Solution
(a) Let C= total costs
C=total variable costs + total fixed costs
C=5q+75
(b) If q=100, C= (5x100)+75=$575
700
Total cost (c)
600
500
400
300
200
100
0
0 50 75 100 150 Production level (q)
(c) If q=75, C=$450
 3. Presenting and interpreting information in charts
3.4 Line graphs

Line graphs can also be used to show multiple data sets. For example:
Exam focus point

Present information Differences

Show the relative size of the component

Pie charts
elements of a total.

Display and compare the number, frequency

Bar charts or other measure, for example, a company’s
sales in different years.

Compare how two variables vary with each

Scatter diagrams
other.

Line graph Clearer than scatter diagrams.

 Practice 3.2
The following table shows the typical salary of part qualified accountants
in three different regions of Aland.
Area Salary
$
Southeast 21,500
Midlands 20,000
Northeast 16,800
The best diagram to draw to highlight the differences between areas is
ˇ
A. A simple bar chart.
B. A pie diagram
C. A line graph
D. A percentage component bar chart

Answer: A
 Summary

1. Written reports

2. Presenting and interpreting

Presenting information information in tables

3. Presenting and interpreting

information in charts

2021/11/10